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Printable Form 1098 Rhode Island: What You Should Know

If the interest was not in fact reported on the 1098, it will not be taxable to you. However, if you paid the interest in accordance with the rules for the tax, the IRS will make sure you are not improperly reported on your federal tax return (by, say, double counting certain forms that your 1098-E reports). If you decide to apply for a loan from this source, the rules will provide for repayment with interest. Some lenders will require the student to sign a document agreeing to this. Others may allow you to pay the tuition in full at graduation. In addition, not all states treat the payment of interest as taxable under section 212 of the federal income tax code. In Massachusetts, for example, the amount of interest paid does not have to be reported to the state's income tax return. If you need further information, consult a tax professional.

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